India’s capital markets regulator is contemplating rolling out detailed guidelines on the use of Artificial Intelligence (AI) in financial markets, with SEBI Chairman Tuhin Kanta Pandey emphasising that AI will form a key pillar of the regulator’s future agenda while maintaining strong human oversight.
Speaking at the ET NOW Markets Summit 2026 on Friday (June 12, 2026), Pandey said SEBI is working on a framework for the safe and responsible adoption of AI across the capital markets ecosystem. He also stressed that the regulator supports the use of “secure and safe AI” with a Human-in-the-Loop (HITL) approach, ensuring that critical decisions continue to involve human supervision.
The remarks from the SEBI chief comes at a time when market participants, including stock exchanges, brokers, mutual funds and investment advisers, are increasingly adopting AI-driven tools for surveillance, compliance, customer onboarding and investment services.
